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Should Value Investors Buy Yext (YEXT) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Yext (YEXT - Free Report) is a stock many investors are watching right now. YEXT is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 14.61. This compares to its industry's average Forward P/E of 20.89. Over the past 52 weeks, YEXT's Forward P/E has been as high as 21.17 and as low as 10.89, with a median of 12.56.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. YEXT has a P/S ratio of 1.22. This compares to its industry's average P/S of 1.75.

Finally, investors will want to recognize that YEXT has a P/CF ratio of 26.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 37.22. Over the past year, YEXT's P/CF has been as high as 227.93 and as low as -1262.83, with a median of 106.38.

These are just a handful of the figures considered in Yext's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that YEXT is an impressive value stock right now.

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